We consider the literatures on urban systems and New Economic Geography to examine questions concerning agglomeration and how areas respond to shocks to the economic environment. We first propose a diagrammatic framework to compare the two approaches. We then use this framework to study a number of extensions and to consider several policy relevant issues.

---

May 2005     Paper Number CEPDP0689

Download PDF - Agglomeration and the Adjustment of the Spatial Economy

This CEP discussion paper is published under the centre's Trade programme.